In the Middle East and Africa (MEA), the payment landscape is a tangled web of diverse providers, methods, and regulations. Amidst this complexity, merchants grapple with challenges like payment fraud, low checkout success rates, and high transaction failures.
The COVID-19 pandemic accelerated the adoption of digital payments in the region, but infrastructure gaps persist. Payment failures in MEA are three times higher than the global average, fraud rates are rampant, and cart abandonment overshadows other regions.
Against this backdrop, payment orchestration platforms like MoneyHash emerge as saviors for merchants, streamlining payment processes through unified APIs. MoneyHash, an Egyptian fintech startup, recently secured $4.5 million in seed funding to fuel its growth across MEA.
Nader Abdelrazik, MoneyHash’s co-founder and CEO, recognizes the immense potential for digital payments in MEA, with only 10% of transactions currently processed digitally. However, he emphasizes the need for patience and continuous learning to navigate this evolving market.
Merchants often begin with one or two payment providers, but as their operations expand, they face the daunting task of integrating multiple payment stacks. This integration process is fraught with inefficiencies, technical complexities, and lengthy timelines.
MoneyHash’s solution offers a unified API for integrating pay-in and pay-out rails, customizable checkout experiences, transaction routing capabilities, and centralized reporting. It also supports various use cases like virtual wallets, subscription management, and payment links.
In an interview, Abdelrazik sheds light on the varying payment failure rates across the region. He cautions against relying solely on averages, as failure rates can range from 1 out of 10 to 5 or 6 out of 10, depending on the business. Additionally, many customers abandon the checkout process before making a payment, a problem often overlooked.
MoneyHash collaborates closely with payment service providers (PSPs), particularly those catering to enterprises and prioritizing customer requirements. This partnership enables MoneyHash to provide expertise and navigate complex payment issues for its clients.
Following a successful Beta launch in 2022, MoneyHash introduced its enterprise suite, targeting large organizations. It integrates with various payment gateways and processors, expanding its network, tripling its revenue, and increasing its processing volume by 3,000% in the past year.
MoneyHash’s recent seed funding round, co-led by COTU Ventures and Sukna Ventures, reflects investor confidence in the company’s ability to unlock the full potential of digital payments in MEA.
Amir Farha, general partner at COTU, believes MoneyHash’s platform can catalyze the growth of digital payments in the region, enabling merchants to tap into new revenue streams. He commends the MoneyHash team for its consistent execution and value creation across the entire chain.
MoneyHash stands poised to revolutionize the payment landscape in MEA, empowering merchants with seamless and secure payment solutions. Its commitment to innovation and collaboration positions it as a key player in shaping the future of digital payments in the region.